The RISK that no depends on us is here in the Step 04. The Steps 01, 02, 03 we can control, but here the Step 04 we can not control. But we can watch the CEO and take our decision to protect or improve our CAPITAL.
All we must to do is watch the results of the CEO of our company, annually we will check if he is going well, the right side of our chart in the future will depend on each of the 5 Steps of the method we use.
We depend on the good work of the CEO to keep the value of the company and its stocks, if the results keeping going well in the future the market will recognise the value of the stock and will put the price of the stock to this value or higher so we will have substantial capital gains.
But if the CEO begins going bad, having problems with costs, expenditures, debts or illegal attitudes we will know about that and will sell our stocks of this company to protect our capital, in such bad conditions in the long term the stocks will lose value and the market will fall the price of them.